U.S. News

Shell CEO to Stay on an Extra Year


Royal Dutch Shell said Wednesday it will extend the contract of Chief Executive Jeroen van der Veer by a year, pushing his retirement date to June 30, 2009.

Van der Veer was promoted to the top job at Shell in 2004, as the company tried to recover from an accounting scandal in which it was forced to restate its proven oil reserves several times.

Shell shares rose 1% to 25.15 euros ($33.40) in Amsterdam trading.

The extension for Van der Veer contrasts with that of Europe's other largest oil company, BP, where CEO John Browne is to retire June 30 of this year, rather than at the end of 2008 as originally planned.

Shell's earnings last year came to a company record $25.4 billion (19.1 billion euros), up fractionally from 2005's record $25.3 billion, on sales up 3.9% to $319 billion (240 billion euros).

BP's earnings in the same period were $22 billion (16.6 billion euros), down 1.4% from $22.3 billion, in a year marked by oil spills, accusations that cost cutting had hit safety and allegations of market manipulation. Sales rose 11% to $271 billion (204 billion euros).

Browne's total 2006 pay package was 4.57 million pounds (6.75 million euros, $8.97 million), down 28% from 2005.

Van der Veer was paid 3.69 million euros ($4.9 million) last year, up 6%.